Question

On a single graph, plot the 1-year short-term, 5-year and 10-year intermediate-term, and 20-year long-term yields of the U.S. Treasury securities. Alongside, plot your choice of yields of bonds from a publicly traded organization, for the same time periods
• Compare the two yield curves and answer the following questions
o Which yield curve is higher?
o What is the reason for the difference in the yields?
o Are any of the yield curves positively sloped? If not, are any of them inverted?
o What do the shapes of the yield curves tell you about future interest rates